Tax reforms, banking reforms and amendment in the companies act will be brought into effect very soon to boost growth. Government sources have told India Today TV that the Prime Minister’s Office (PMO) along with the finance and the corporate affairs ministry officials are now working upon a plan to tackle slowdown.
To begin with, the government is looking at amending companies act to decriminalise some non-serious offenses and handle them through an in-house mechanism, which would involve levying penalties in cases of default.
The idea is to pay more attention to the offenses of a serious nature. Meetings between entrepreneurs and government have prompted this move.
Last week, after having detailed meetings with industrialists, auto sector players and industry bodies, Finance Minister Nirmala Sitharaman apprised Prime Minister Narendra Modi about the economic situation.
After the prime minister’s nod, the PMO is closely monitoring the economic situation and discussions are on with various industries on the way forward.
The government may soon start giving special packages to the auto industry, which is reeling under immense pressure, to ease their pain. According to the reports, reducing GST on automobile components is also in the works.
With economists questioning the government’s GDP estimates and stalwarts like Mohandas Pai and Kiran Mazumdar Shaw speaking up against “tax terrorism”, the government’s priority now is to give stimulus packages industries to bring consumption and economy back on track.